Second Wind: As Tier II Cities Rise, Lucknow Leads in Unlocking Growth Potential

By Neeraj Sharma

Lucknow, February 12, 2025: India’s Tier II cities have emerged from quiet regions into booming urban centres. With property prices in metro cities skyrocketing, making homeownership increasingly challenging, buyers and investors are exploring alternatives that offer affordability without compromising on quality living and investment potential. Among such alternatives, Lucknow stands as a frontrunner, driven by its strategic location, robust infrastructure development, and comparatively affordable property prices.

One of the major boosters for Lucknow’s growth is its improvement in connectivity. As per Colliers’ recent report, the Awadh Expressway, i.e. Kanpur Lucknow Expressway, is to be completed by 2025, marking a significant infrastructure milestone for the region and likely to play an important role in the future development of the city. Besides, areas like Outer Ring Road, including Raebareli Road, Sultanpur Road, and Kanpur Road, have been developed rapidly in the last few years because of the improved connectivity and infrastructure, which has enhanced real estate development.

Besides, the Purvanchal Expressway and Ganga Expressway have positioned Lucknow as a key hub, improving intercity travel and commercial activity. These high-speed corridors are enhancing the city’s connectivity with Delhi, Varanasi, and other key economic zones, leading to a surge in real estate demand along these routes.

Further, the report highlights that emerging micro-markets like Gomti Nagar are witnessing significant growth in land prices. In the Gomti Nagar Extension area, the average land price for plotted residential developments is around INR 7,500 per sq. ft, the analysis showed. The area offers modern townships, high-rise apartments, and gated communities with better connectivity to business districts and transit hubs. With the affordability advantage over metros, NRIs and investors are showing increased interest, further driving appreciation in property values in the region.

Moreover, the Indian government’s continued emphasis on developing Tier-II cities is driving real estate growth in emerging markets like Lucknow. Several policy-driven initiatives, including the Smart City Mission, AMRUT (Atal Mission for Rejuvenation and Urban Transformation), and Pradhan Mantri Awas Yojana (PMAY), are transforming urban infrastructure, improving liveability and making homeownership more accessible.

Therefore, through continuous infrastructure development and government-backed initiatives, property prices in Lucknow should continue to increase many folds in the coming years, thereby providing a high return on investment. Emerging micro-markets like Shaheed Path, Gomti Nagar Extension, and Amar Shaheed Path are already experiencing rising demand for luxury housing, making them an investment hotspot. With this growth, Lucknow will be one of the most promising Tier-II markets in India, offering the right amalgamation of growth, affordability, and long-term investment.

The author is Managing Director, Escon Infra Realtors